United Rentals Growth Outlook After a Record-Setting Q2

United Rentals Posts Record Rental Revenue

Rental revenues increased 12.7% year over year to $3.85 billion in the second quarter of 2026. Total revenues rose 11.8% to $4.41 billion, marking a quarterly record.

The quarter was supported by a 7.1% increase in average original equipment at cost, a measure of fleet size, and a 3.4% improvement in fleet productivity. Owned equipment rental revenues grew 9%, showing that demand was not limited to one revenue stream.

URI Raises Its 2026 Financial Outlook

United Rentals raised its full-year revenue outlook to $17.5 billion-$17.8 billion from $16.9 billion-$17.4 billion. Adjusted earnings before interest, taxes, depreciation and amortization guidance increased to $7.98 billion-$8.13 billion from $7.63 billion-$7.88 billion.

Management cited customer backlogs, year-to-date momentum and continued large-project activity as support for the higher outlook. Hospitals, airports, liquefied natural gas terminals and data centers were among the project categories supporting demand.

United Rentals Expands Specialty Demand

Specialty segment equipment rental revenues climbed 24.8% year over year to $1.43 billion. The segment remains a key part of URI’s broader strategy because it adds product depth beyond general rental equipment.

Demand was broad across trench safety, power and heating, ventilation and air conditioning, fluid solutions, mobile storage, matting, tools and site services. That breadth helps the company serve complex worksites through bundled rental solutions.

Argan, Inc. AGX, a service provider to the power industry, also sits near the large-project theme because energy infrastructure can require extensive equipment and construction services. Masco Corporation MAS, a manufacturer of branded home improvement and building products, offers a different read on construction-related demand, especially through repair, remodeling and new construction channels.

URI Balances Growth With Margin Risk

Growth did not remove the margin questions. Specialty equipment rental gross margin fell 140 basis points to 44.4% as lower-margin ancillary and re-rent revenues grew faster than owned equipment rentals.

Ancillary and re-rent revenues increased nearly 28%, roughly three times the growth rate of owned equipment rental revenues. Lower labor and benefit costs as a percentage of revenues partly offset that pressure, while broader revenue growth and cost-management efforts helped keep profitability from weakening across the business.

United Rentals Signals Strong Near-Term Momentum

The bottom line is that URI enters the second half of 2026 with rental demand, fleet investment and specialty growth working in its favor. Margin mix remains the main offset, especially if ancillary and re-rent activity continues to expand faster than owned equipment rentals.

The stock currently carries a Zacks Rank #1 (Strong Buy), which points to a favorable short-term earnings estimate revision picture over the next one to three months. Its Growth Score of B, Momentum Score of B and VGM Score of B add support for investors focused on growth characteristics, price trends and a blended style profile.  You can see the complete list of today’s Zacks #1 Rank stocks here.

The Value Score of C is more neutral, reflecting a less compelling valuation setup. For investors, that makes URI a growth and momentum story with a valuation profile that requires discipline.

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This article originally published on Zacks Investment Research (zacks.com).

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